Being an adult, you have several responsibilities to take care of. One of the most crucial responsibilities is earning enough money. Sure, you have a job and you’re earning a great sum from it, but with time, comes savings.
Many people tend to keep their savings in an account, doing nothing with it. What if I tell you ways to earn more money without putting efforts? Would you like to hear it?
Alright, here are some ways to make that money of yours work for you. All of these platforms have the potential to give you great returns over time with small investments in 2021.
Invest In High-Yielding Savings Account
If you’re just getting started with investment, high yield savings accounts are the best & safest way to get small returns. You could go for a bank that can give a high interest whenever you deposit money in your account.
But, which bank should you choose? Well, your local bank is not certainly a great choice, or in this case, any brick-and-mortar bank is not great because these yield low interests or ask for big deposits to get significant returns.
If you want a high-yielding savings account, go with an online bank. Currently, there are many options that you can choose online.
Low-Cost Mutual Funds
Mutual funds are one of the least risky investments opportunities out there. The key to investing in mutual funds is finding such that comes with minimal to no commission fees.
Earlier mutual fund companies used to charge about 1-2% of your money as their fee, but with an increase in the competition, the fees have been quite low recently as well.
One such low commission fund is Index funds. Just keep one thing in mind, several funds require a few thousand dollars as a minimum investment for mutual funds.
If you’re willing to put that much amount, then great, if not, there are other funds ( low-cost ETFs) that don’t have such criteria. So go ahead and invest in these.
Install Stash and Start Buying Fractional Shares
Stash is an excellent way to invest if you can’t manage to put big money at once on any investment platform. The app allows you to purchase fractional shares of stocks and ETFs.
You can start your investment on this platform with just $5, which is amazing! What makes the platform unique is the fractional share purchasing opportunity, which is not offered by most brokerage companies.
You can opt for automatic investment and just monitor the growth. As a matter of fact, you can set a specific criteria for investment and watch your portfolio grow over time.
This platform charges a fee as little as $1 per month. So even if you’re a minimum wager – Stash is definitely affordable for you.
Use the Betterment Platform to Your Advantage
Betterment is a Robo-advisor platform. It means the website provides automated, algorithm-driven investment tips with negligible human contact. The annual fee charged by Betterment is as low as 0.25% of the total investment.
When you open an account in Betterment, you have to fill up your pre-tax income information, age, and investing goals. Based on that, they will create a portfolio of potential stocks and bonds you can invest in.
Bots will manage your portfolio; they will rebalance your portfolio automatically, reinvest, as well as engage in tax-loss harvesting. Just keeping an eye on the portfolio is all you need.
Join Peer-to-Peer Lending Platforms and Get Extra Some Bucks
Lending money is one of the best ways to make money without putting in much effort. In 21st century, there are many online platforms let you lend money.
The two of the leading platforms in the peer-to-peer lending market are Lending Club and Prosper. You can start money lending at these platforms with as little as $25.
All you wanna do is select a loan portfolio and interest rates you want and start lending. Just keep one thing in mind, platforms like Lending Club need you to keep a minimum balance of $1000, but such is not the case with Prosper. So it’s up to you which one you wanna go for!
The Bottom Line
The above platforms are the best places to spot investment opportunities in 2021. Make sure to give them a try and choose the ones you feel most compatible with.
Keeping your saved money in an account and seeing it rot is not a great way to make money. Instead of that, make something out of it because smallest things lead to the biggest changes.
So make sure you take advantage of the online market to the fullest in 2021 and the coming years!